Explore Requirements of Texas Car Title Loans

Every person in dire need of cash often seeks relief in Texas car title loans as they are a quick way of handling any emergency cash need. The fast turn around time and less requirement make it an ideal financial choice. It’s time to check the requirements of this loan.

You Need a Car Title 

As you apply for a car title loan, the first thing you need to arrange is your car title. You must be a car owner if you want to get a loan. Don’t you have a lien-free or clear title? In that case, you can’t get the loan amount. However, there is an exception. When a person owes only 30 percent on their car while they have paid 70 percent, he can tap on the car’s equity value. You get a car through financing, and you are paying back for many months. The amount you have paid establishes your equity. It’s the same process as mortgage financing and equity. As you have some equity, you can borrow money against it. 

You may need a New Insurance Policy

You might have an insurance policy, but the lender wants to play on the safe side in many cases. When the current policy doesn’t insulate them well, they ask you to get another policy. Although your car title is the collateral, every lender wants to protect his money. He wants it back, and if any accident happens, then his money is on the risk. Therefore, when you apply for a Texas title loan, you often have to sign up for new insurance. 

You may need to pay the Repair cost

An independent car dealer will inspect your car and then review its condition. Sometimes, your car’s condition is not good. When you own a salvage car and plan to borrow money on its title, you can’t obtain a loan unless you spend its repair. Lenders can grant you a credit only when your car’s condition is up to factory standards. So, when you know that you own a car whose condition doesn’t meet industry standards, then you should first spend money on its repair to rebuild it.

You may or may not have to Install a GPS Tracker

Although a car title loan is a secure one, it doesn’t mean that it doesn’t contain any lender risks. For maximizing the safety level of the vehicle, a lender asks you to install a GPS tracker. He is going to activate this device in case your car is stolen or missing. This tracking device offers him more control over a vehicle. If you plan to get a loan amount or ditch your lender of car title loan in Texas, then it’s not possible, because the lender can track you back through such a device. Other cases where lenders activate a tracker is when you default on the loan, he wants to know where your car is. He collects cars and sells them in the market to recover his loan amount.

You can get a Car Loan Even Title is not Free and Clear

These days, lenders try to help every person who is in dire need of cash. Therefore, they offer a variety of loan options. Don’t you have a clear or free title? You can get a short-term online loan whose term ranges from two to three months. If you are going through a difficult life situation, then don’t let bad credit let you down.